Desert Messenger

June 21, 2023 www.DesertMessenger.com 19 By Shanana Rain Golden-Bear [After receiving complaints about a local handyman's practices, I felt it important to turn this into a "teach- ing moment" by educating the pub- lic about Arizona laws ~Rain] Contractors who perform work worth OVER ONE THOUSAND DOLLARS ($1,000) must have an Arizona Contractors License. Work that is worth less than $1,000 AND is of a casual or minor nature does not carry handyman license require- ments. This is commonly known as the "handyman exemption." According to Arizona Attorney Colby Kanouse : "Arizona law requires contractors to be licensed through the Arizona Registrar of Contractors (ROC). This article will explore the rea- son for the licensing requirement; one of the most commonly invoked (and abused) exceptions to it; and the potential criminal penalties for contracting without a license." AZ LICENSING REQUIREMENT If a construction project goes bad, it can have a huge and detrimental effect on public and personal safety. Imagine an improperly built bridge, or a high-rise built on an unstable foundation. Even the construction of a home or the renovation of a kitchen, if not performed properly, can result in a significant costs and risks to health and safety. To help protect the public from poor workmanship and shady busi- ness practices, A.R.S. § 32-1151 sets forth Arizona's contractor licensing requirement: It is unlawful for any person, firm, partnership, corporation association or other organization, or a combina- tion of any of them, to engage in the business of, submit a bid or respond to a request for qualification or a request for proposals for construc- tion services as, act or offer to act in the capacity of or purport to have the capacity of a contractor without having a contractor's license in good standing in the name of the person, Do you need a license to be a handyman in Arizona? firm, partnership, corporation, asso- ciation or other organization as pro- vided in this chapter, unless the per- son, firm, partnership, corporation, association or other organization is exempt as provided in this chapter. Evidence of securing a permit from a governmental agency or the em- ployment of a person on a construc- tion project shall be accepted in any court as prima facie evidence of ex- istence of a contract. The plain language of the statute forbids someone without a contrac- tor's license from engaging in any portion of a construction job, begin- ning with the bidding process and continuing through the completion of the actual work. The licensing requirement is designed to protect the public against "unscrupulous and unqualified persons purport- ing to have the capacity, knowledge and qualifications of a contractor" [Northern v. Elledge, 72 Ariz. 166, 172 (1951)] and "to regulate the con- duct of those engaged in the busi- ness of contracting so as to discour- age certain bad practices, which might be indulged in to the detri- ment of the public."[Security Ins. Co. of New Haven v. Day, 6 Ariz. App. 403, 406 (1967)] EXCEPTIONS TO THE REQUIREMENT Although A.R.S. § 32-1151 appears to provide a blanket prohibition against doing any work without first obtaining a contractor's license, an- other statute (A.R.S. § 32-1121) con- tains several exceptions. The most commonly invoked excep- tion is contained in § 32-1121(A)(14), which is generally known as the "Handyman Exemption." Under that exemption, a person who does not hold a contractor's license may bid for and accept work when the aggregate contract price, including labor and materials, amounts to less than $1,000. The words "aggre- gate contract price" are key, because they make clear that one cannot take advantage of the exception by breaking a job up into parts so that each part has a contract price of less than $1,000. People have tried, and those who have been caught have been convicted of contracting with- out a license. [See Town of Gilbert Prosecutor's Office v. Downie , 218 Ariz. 466 (2008)] PENALTIES Contracting without a license in vi- olation of A.R.S. § 32-1151 is a class 1 misdemeanor (A.R.S. § 32-1164). All class 1 misdemeanors carry a maximum term of six months in the county jail and a maximum fine of $2,500 plus an 83% surcharge. The minimum penalty for contracting without a license as a first offense is a fine of $1,000 plus an 83% surcharge. A.R.S. § 32-1164(B). In most cases, an unlicensed contrac- tor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious. Contracting without a license can give rise to more serious charges. For example, if an unlicensed contrac- tor falsely claimed to be licensed in order to obtain a job, he might be charged with Fraudulent Schemes and Artifices, a class 2 felony. Or, as- sume that, in a kitchen remodel, an unlicensed contractor improperly in- stalled gas lines that caused a fire and led to the death of the home's occu- pant. In that situation the unlicensed contractor might face felony charges for negligent homicide or even man- slaughter, both of which could result in a lengthy prison term. In addition to any criminal pen- alties imposed by the court, an unlicensed contractor will also be required to pay restitution to the extent anyone suffered economic loss as a direct result of the offense. Restitution in contracting without a license cases is typically the con- tract price minus the economic ben- efit received by the victim as a result of the work performed. However, restitution could be much more than that, particularly if the cost of damages caused by the unlicensed contractor's work ex- ceeds the contract price. In addition to the criminal penal- ties and restitution described above, a conviction for contracting without a license will also come with col- lateral consequences. "Collateral consequences" stem from the con- viction but are not imposed direct- ly by the court. Perhaps the most significant collateral consequence associated with a conviction for contracting without a license arises as a result of A.R.S. § 32-1122(D), which prohibits the Registrar of Contractors (ROC) from issuing a contractor's license to anyone who has been convicted of contracting without a license during the preced- ing 12 months." According to Quartzsite Town Code, §110.01 LICENSE REQUIRED. "It is unlawful for any person to carry on any trade calling, profes- sion, occupation or business, speci- fied in this chapter, without first having procured a license from the town to do so either pursuant hereto and without complying with any and all regulations of such trade, calling, profession, occupation or business as specified in this chapter." Town Business License is $75 per year, valid January 1- December 31. A seasonal Vendor Permit is still only $50, valid up to 180 days. Ap- plication for a Quartzsite Business License or Vendor Permit is available online at www.QuartzsiteAz.org or call Town Hall at 928-927-4333 for more details. Search online for AZ Contractors, https://roc.az.gov or contact Ari- zona Registrar of Contractors (AZ ROC) directly at 877.692.9762. To file a complaint against an unlicensed contractor or to learn more visit: https://roc.az.gov/unli- censed-contracting-tips-hotline https://www.lang-klain.com

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